Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/167535
Authors: 
Cigno, Alessandro
Giovannetti, Giorgia
Sabani, Laura
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6549
Abstract: 
Incorporating family decisions in a two-period.model of the world economy, we predict that trade liberalization raises the skill premium and reduces child labour in developing countries where the adult labour force is sufficiently well educated to attract production activities from abroad that will increase the demand for skilled relative to unskilled labour. Elsewhere, liberalization will reduce the skill premium, but it will not necessarily raise child labour. Our prediction is not rejected by the data, and it explains why child labour is negatively associated with trade openness in those developing countries where the labour force was relatively well educated when the liberalization took place, but not in the others.
Subjects: 
child labour
education
trade liberalization
skill endowments
skill premium
JEL: 
D13
D33
F16
J13
J24
Document Type: 
Working Paper
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